The federal judge overseeing a putative class action against insurer The Hartford has certified a class of about 19,500 California policyholders in a case claiming the insurer routinely underpays claims for damaged property by depreciating items not subject to such reductions under their policies or state law.
The complaint also accuses Hartford of decreasing the sales tax paid on replacement items. Both practices, it said, violate California’s insurance code and constitute breach of contract and related claims.
|Lead plaintiff's building damaged by fire
The lead plaintiff’s suit concerns a renovated 1900-vintage building in San Francisco that was damaged by a fire in 2013.
Using an “actual cost value” method for paying the claim, The Hartford estimated it would cost $731,000 to repair the building, which it paid Johnson. He spent $644,000 on repairs but did not repair or renovate the third floor.
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Greg Land
Greg Land covers topics including verdicts and settlements and insurance-related litigation for the Daily Report in Atlanta.
